Automatic Transmission problems of the 2005 Mini Cooper S

2005 Mini Cooper S-began having issues with the car jerking when shifting gears (not a manual transmission) in early 2009. I took it to my mechanics. They had it for quite awhile, trying to determine the root cause. They advised that they even consulted with the dealership, but said they felt like the dealership wasn't very forthcoming in their information. My mechanic ultimately decided that he thought it was a sensor that needed to be replaced. $500 to replace this sensor. The rough shifting continued and on June 2, 2009, while I was out at lunch, I lost first gear altogether. The car would move forward, but was not able to pick up any real speed until the rpm's got high enough. I pulled over into a parking lot, put the car in park and turned the car off. When I started it again, I had the use of first gear again, but this time it felt as though it wouldn't shift out of third. I drove it very slowly and carefully back to my office. I called the dealership, told them that I was going to need to have it towed in, and asked if they had a towing service. She said no, but recommended a towing company. I had it towed it but didn't hear anything back from anyone until Monday, June 8, 2009. My husband was told it was the transmission and that it would be $8,000 for the transmission and $2000 for the labor. Hard to believe anyone could say that with a straight face. Around June 9, 2009, the Mini service manager said he was going to work with it a little bit and see if he could get any of those costs covered under a service bulletin. Today is June 16, 2009. My husband has called, left voicemails, and even gone up the dealership. We have heard nothing back from the Mini service manager. My husband spoke to the BMW service manager, who told him that we'd have to wait and talk to the Mini service manager.